Top positions after re-balance

The recent re-balance changed the top 5 positions in the index

After the last rebalance the top-5 positions in the index have changed, it also has added several new positions. Below we show the new top 5 positions which come from different sectors. Estée Lauder (EL) operating in prestige beauty, Abbvie (ABBV) in healthcare, AptarGroup (ATR) in packaging, Skyworks (SWKS) manufacturing RF chips, and Kroger (KR) in the grocery space.

Three of the five are relatively cheap with low forward P/E’s, AptarGroup and Estée Lauder look a bit pricey. In Estée Lauder’s case it has been growing at a pretty decent pace, so it could be justified. The convolutional neural network that picks these companies does take a lot of factors in consideration, including growth, margins, etc. As well as valuation ratios, so there has to be something the algorithm liked for it to have picked them as companies likely to outperform the market.

All five of these companies pay a dividend, with Abbvie being by far the most attractive.

In terms of growth, we particularly like Skywork’s profile, its growth has been accelerating an in the most recent quarter hit 37%. Not surprisingly Kroger has a low growth rate, which is to be expected from a mature grocer.

In the next post we will share the positions of the entire index. That post is for subscribers only, if you would like to support us and the cost of maintaining the Widealpha AI-Selected index please consider subscribing to our substack. Have a great day!

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